Investors need to note the power sector developments
One of the key features of the Union Budget for FY22, that needs to be noted by the investors, is the proposal to implement some important reforms in the power sector. The finance minister mentioned the following in her speech on this subject: “61. The distribution companies across the country are monopolies, either government or private. There is a need to provide choice to consumers by promoting competition. A framework will be put in place to give consumers alternatives to choose from among more than one Distribution Company. 62. The viability of Distribution Companies is a serious concern. A revamped reforms-based result-linked power distribution sector scheme will be launched with an outlay of Rs3,05,984 crores over 5 years. The scheme will provide assistance to DISCOMS for Infrastructure creation including pre-paid smart metering and feeder separation, upgradation of systems, etc., tied to financial improvements.” Budgetary outlay for the sector has also been enhanced by 22...